As one of the fastest-growing counties in the state, Johnston County offers a desirable location just east of Raleigh. In this market report, we'll delve into important statistics and trends to provide valuable insights for both homebuyers and sellers. From new listings and inventory levels to median sales prices and days on market, let's explore the current state of the housing market in Johnston County. The real estate market almost nationwide is in a bit of a conundrum where home prices and market trends are not doing what you might expect. The data provided for interest rates and available homes when you review them don't always align. When sales are down and days on the market are up as we have in the Triangle MLS you would expect prices to be dropping more than they are. Instead we are seeing market conditions in some of the recently sold homes in Johnston County where the sold price was over list price with multiple offers received. The area continues to attract homebuyers where the typical home is more affordable, the employment opportunities are strong, the quality of life, the schools in Johnston County, infrastructure all combine to year-over-year create a desirable place to live.
Decrease in Listings and Low Inventory in Real Estate Market in Johnston County, NC
In May of this year, Johnston County recorded only 412 new listings, marking a significant 33% drop compared to the previous year. Year to date, listings have decreased by 20%, exacerbating the ongoing challenge of not enough homes in the market. The total number of available homes has increased by 33% to reach 688, but this figure remains relatively low compared to previous years. As a result, desirable properties in good school districts, newer constructions, or well-maintained homes in sought-after neighborhoods are likely to attract multiple offers. The record low inventory can also be attributed to the fact that many of the homebuyers who purchased a home in the last two years are sitting on interest rates anywhere from the two's to the low fours, so no reason for them to switch to a 7% interest rate anytime soon. Many homeowners also refinanced their mortgages into low interest rates, reducing their mortgage payments or pulling equity to make improvements and the market data shows they ain't moving either.
Closed Sales and Median Sales Price of Homes for Sale in Johnston County
Closed sales in May declined by 15% compared to the previous year, with only 406 homes sold. Year to date, closed sales have decreased by almost 20%. The median price in Johnston County experienced a slight drop to approximately $365,000, representing a 2.6% decrease from 2022. However, the year-to-date median price has seen a nearly 1% increase, showcasing a potential upward trend. The monthly median sale prices from January to April also demonstrated a fluctuating pattern.
Factors Impacting Pricing and Days on Market
Several factors contribute to the pricing and days on market. Firstly, the time of year plays a role as people often plan moves based on the school calendar. Secondly, buyers are adjusting to high-interest rates, affecting their purchasing power. The average sale price in May 2023 decreased by 1.3%, but year-to-date figures show a 2.3% increase. Sellers have also shown flexibility in accepting offers, as reflected in the decline in the percentage of original list price received. Notably, the days on market increased by 220% compared to the previous year, indicating longer selling periods. As homebuyers gradually come to accept the higher interest rate climate and market activity increases in the busy summer season certain homes will sell fast.
Johnston County Offers the Best Home Value in Triangle, NC Housing Market
The months supply of homes in May 2023 increased by almost 73% compared to the previous year. However, it has been trending downwards since the start of the year, suggesting a potential shift in the market. For buyers considering Johnston County in comparison to nearby areas, the median price in May 2023 was $365,000, while Cary stood at $603,000, Raleigh at $435,000, Holly Springs/Fuquay Varina at $499,000, and Wake Forest at $528,000. This makes Johnston County an attractive option, offering excellent value with its proximity to downtown Raleigh, the airport, and nearby attractions.
Conclusion: In conclusion, the housing market in Johnston County, NC, is experiencing a decline in new listings and low numbers of homes for sale leading to competitive multiple offer situations for desirable properties. While closed sales have decreased, the median price shows a mixed trend. Pricing strategies, days on market, and months supply of housing provide valuable insights for both buyers and sellers. With its affordable median price and convenient location, Johnston County remains an attractive option for those considering the Triangle area. The NC real estate market has high buyer demand in coastal areas, mountain towns, major cities like Raleigh, Durham, Charlotte, Greensboro where often the number of homes for sale is not enough for the demand. This in turn drives an increase in home building in smaller towns and this past year the number of closed sales is up in many smaller markets where the price per square foot can be a lot less.
Johnston County Market Report April 2023
This post was written by David O'Doherty, a licensed real estate agent since 2007 helping buyers and sellers in Clayton, NC and the Greater Triangle Area of North Carolina. He is committed to providing his clients with exceptional service and personalized attention throughout every step of the real estate process. If you're looking to buy or sell a property in Clayton, NC, or the surrounding areas or have any questions about the local real estate market, don't hesitate to contact David O'Doherty today. Call or Text (919) 601-2268 or email [email protected]